8 AAC 85.290. Computation of new or newly covered employer's average industry tax rate

(a) The "average industry tax rate" as used in AS 23.20.170 (b) is intended to be the most likely rate the new or newly covered employer would be assigned if he had sufficient experience to receive a rate under AS 23.20.280 - 23.20.310. The average industry tax rate to be assigned is that of the average rate for the corresponding rate year of employers performing nearly the same or correlated services.

(b) The average industry tax rate will be computed for each major division in the most current version of the North American Industry Classification, United States, as specified in AS 23.20.170 . A new or newly covered employer will be assigned to a major division in accordance with the standards and practices employed by the United States Department of Labor.

(d) The computation of the major division average tax rates will be based on the experience of ratable covered employers used in determining the contribution rates for the corresponding rate year under AS 23.20.280 - 23.20.310 and then computed based on the tax schedule in effect during the rate year as determined by the appropriate reserve multiple. The computation will be made before the beginning of each rate year and remains in effect for the duration of the rate year.

(e) The new or newly covered employer shall be assigned the rate of the appropriate tax schedule which is closest to his industry's average. If the average falls exactly between two such rates, the lower rate of the two shall be assigned.

(f) If an employer has been assigned an improper industrial classification code due to insufficient information, a subsequent change in that code may be made and the employer may become liable for additional contributions or entitled to a reimbursement for payment of excess contributions.

(g) A new or newly covered employer has the same right to appeal his assigned average industry tax rate as that granted to ratable or eligible covered employers in AS 23.20.305 .

History: Eff. 11/5/74, Register 52; am 5/20/75, Register 54; am 1/7/78, Register 65; am 4/28/95, Register 134; am 3/3/2001, Register 157

Authority: AS 23.20.045

AS 23.20.170

AS 23.20.310

Editor's note: Copies of the most current version of the National Industry Classification System Manual, United States, or an electronic equivalent may be obtained by contacting National Industrial Classification Association, 10088 South Prestwick Circle, South Jordan, Utah 94095. Internet: www.naics.com or e-mail: info@naics.com.

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